Mentioned below is the derivative strategy for ITC in today's trade:
OPTION STRATEGY:
OPTION STRATEGY:
Buy 350 Jun PE 1 lot
Sell 340 Jun PE 2 Lots
Buy 330 Jun PE 1 lot
Target: Rs 13,500
Stop Loss: Rs 2,500
Sell 340 Jun PE 2 Lots
Buy 330 Jun PE 1 lot
Target: Rs 13,500
Stop Loss: Rs 2,500
Rationale: ITC is consolidating in past few trading sessions. Call built-up at 360 could act as an immediate resistance. Unwinding in 350 PE could augurs well for downward momentum. Considering stable volatility and to benefit from theta decay Put Butterfly spread is recommended.
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Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities